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In July 2005, inspired by a talk on formation flying by unmanned aircraft by Sandor Veres at the Liverpool Agents in Space Symposium, I wrote down some rules of thumb I have been using informally for determining whether an agent-based modeling (ABM) approach is appropriate for a particular application domain. Appropriateness is assessed by answering the following questions:

1. Are there multiple entities in the domain, or can the domain be represented as if there are?
2. Do the entities have access to potentially different information sources or do they have potentially different beliefs? For example, differences may be due to geographic, temporal, legal, resource or conceptual constraints on the information available to the entities.
3. Do the entities have potentially different goals or objectives? This will typically be the case if the entities are owned or instructed by different people or organizations.
4. Do the entities have potentially different preferences (or utilities) over their goals or objectives ?
5. Are the relationships between the entities likely to change over time?
6. Does a system representing the domain have multiple threads of control?

If the answers are YES to Question 1 and also YES to any other question, then an agent-based approach is appropriate. If the answer to Question 1 is NO, or if the answers are YES to Question 1 but NO to all other questions, then a traditional object-based approach is more appropriate.
Traditional object-oriented systems involve static relationships between non-autonomous entities sharing the same beliefs, preferences and goals, and in a system with a single thread of control.